WALMART INC (1WMT.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1WMT - US9311421039 - Common Stock
96.72 EUR
-5.64 (-5.51%)
We assign a fundamental rating of 5 out of 10 to 1WMT. 1WMT was compared to 24 industry peers in the Consumer Staples Distribution & Retail industry. While 1WMT belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. 1WMT is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
- 1WMT had positive earnings in the past year.
- In the past year 1WMT had a positive cash flow from operations.
- Each year in the past 5 years 1WMT has been profitable.
- 1WMT had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- 1WMT has a better Return On Assets (7.94%) than 91.67% of its industry peers.
- Looking at the Return On Equity, with a value of 23.84%, 1WMT belongs to the top of the industry, outperforming 87.50% of the companies in the same industry.
- Looking at the Return On Invested Capital, with a value of 12.07%, 1WMT is in the better half of the industry, outperforming 79.17% of the companies in the same industry.
- 1WMT had an Average Return On Invested Capital over the past 3 years of 12.73%. This is above the industry average of 9.20%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.94% | ||
| ROE | 23.84% | ||
| ROIC | 12.07% |
ROA(3y)6.13%
ROA(5y)5.87%
ROE(3y)18.36%
ROE(5y)17.64%
ROIC(3y)12.73%
ROIC(5y)12.9%
1.3 Margins
- 1WMT has a better Profit Margin (3.26%) than 87.50% of its industry peers.
- In the last couple of years the Profit Margin of 1WMT has remained more or less at the same level.
- 1WMT has a Operating Margin of 4.12%. This is in the better half of the industry: 1WMT outperforms 75.00% of its industry peers.
- In the last couple of years the Operating Margin of 1WMT has remained more or less at the same level.
- The Gross Margin of 1WMT (24.91%) is comparable to the rest of the industry.
- 1WMT's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.12% | ||
| PM (TTM) | 3.26% | ||
| GM | 24.91% |
OM growth 3Y-4.61%
OM growth 5Y1.02%
PM growth 3Y6.13%
PM growth 5Y0.1%
GM growth 3Y-0.33%
GM growth 5Y0.13%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), 1WMT is creating some value.
- 1WMT has less shares outstanding than it did 1 year ago.
- 1WMT has less shares outstanding than it did 5 years ago.
- The debt/assets ratio for 1WMT has been reduced compared to a year ago.
2.2 Solvency
- An Altman-Z score of 6.16 indicates that 1WMT is not in any danger for bankruptcy at the moment.
- The Altman-Z score of 1WMT (6.16) is better than 95.83% of its industry peers.
- The Debt to FCF ratio of 1WMT is 3.48, which is a good value as it means it would take 1WMT, 3.48 years of fcf income to pay off all of its debts.
- The Debt to FCF ratio of 1WMT (3.48) is better than 79.17% of its industry peers.
- 1WMT has a Debt/Equity ratio of 0.51. This is a neutral value indicating 1WMT is somewhat dependend on debt financing.
- 1WMT's Debt to Equity ratio of 0.51 is amongst the best of the industry. 1WMT outperforms 83.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.51 | ||
| Debt/FCF | 3.48 | ||
| Altman-Z | 6.16 |
ROIC/WACC1.41
WACC8.59%
2.3 Liquidity
- 1WMT has a Current Ratio of 0.80. This is a bad value and indicates that 1WMT is not financially healthy enough and could expect problems in meeting its short term obligations.
- 1WMT has a Current ratio of 0.80. This is in the lower half of the industry: 1WMT underperforms 62.50% of its industry peers.
- 1WMT has a Quick Ratio of 0.80. This is a bad value and indicates that 1WMT is not financially healthy enough and could expect problems in meeting its short term obligations.
- With a Quick ratio value of 0.24, 1WMT is not doing good in the industry: 91.67% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.8 | ||
| Quick Ratio | 0.24 |
3. Growth
3.1 Past
- 1WMT shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 4.90%.
- 1WMT shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 8.80% yearly.
- The Revenue has been growing slightly by 4.34% in the past year.
- Measured over the past years, 1WMT shows a small growth in Revenue. The Revenue has been growing by 5.38% on average per year.
EPS 1Y (TTM)4.9%
EPS 3Y5.3%
EPS 5Y8.8%
EPS Q2Q%6.9%
Revenue 1Y (TTM)4.34%
Revenue growth 3Y5.94%
Revenue growth 5Y5.38%
Sales Q2Q%5.84%
3.2 Future
- 1WMT is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.71% yearly.
- Based on estimates for the next years, 1WMT will show a small growth in Revenue. The Revenue will grow by 4.96% on average per year.
EPS Next Y6.14%
EPS Next 2Y9.28%
EPS Next 3Y10.08%
EPS Next 5Y8.71%
Revenue Next Year4.73%
Revenue Next 2Y4.82%
Revenue Next 3Y4.78%
Revenue Next 5Y4.96%
3.3 Evolution
- The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
- The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 44.57, 1WMT can be considered very expensive at the moment.
- Based on the Price/Earnings ratio, 1WMT is valued a bit more expensive than 75.00% of the companies in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 28.87, 1WMT is valued quite expensively.
- 1WMT is valuated quite expensively with a Price/Forward Earnings ratio of 38.19.
- Based on the Price/Forward Earnings ratio, 1WMT is valued a bit more expensive than the industry average as 79.17% of the companies are valued more cheaply.
- The average S&P500 Price/Forward Earnings ratio is at 25.96. 1WMT is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 44.57 | ||
| Fwd PE | 38.19 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, 1WMT is valued a bit more expensive than 75.00% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, 1WMT is valued a bit more expensive than 79.17% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 59.78 | ||
| EV/EBITDA | 23.26 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- The decent profitability rating of 1WMT may justify a higher PE ratio.
PEG (NY)7.26
PEG (5Y)5.07
EPS Next 2Y9.28%
EPS Next 3Y10.08%
5. Dividend
5.1 Amount
- 1WMT has a yearly dividend return of 0.79%, which is pretty low.
- 1WMT's Dividend Yield is slightly below the industry average, which is at 2.82.
- With a Dividend Yield of 0.79, 1WMT pays less dividend than the S&P500 average, which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.79% |
5.2 History
- The dividend of 1WMT has a limited annual growth rate of 3.32%.
Dividend Growth(5Y)3.32%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- 31.92% of the earnings are spent on dividend by 1WMT. This is a low number and sustainable payout ratio.
- 1WMT's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP31.92%
EPS Next 2Y9.28%
EPS Next 3Y10.08%
WALMART INC / 1WMT.MI FAQ
What is the fundamental rating for 1WMT stock?
ChartMill assigns a fundamental rating of 5 / 10 to 1WMT.MI.
What is the valuation status of WALMART INC (1WMT.MI) stock?
ChartMill assigns a valuation rating of 1 / 10 to WALMART INC (1WMT.MI). This can be considered as Overvalued.
What is the profitability of 1WMT stock?
WALMART INC (1WMT.MI) has a profitability rating of 7 / 10.
What is the financial health of WALMART INC (1WMT.MI) stock?
The financial health rating of WALMART INC (1WMT.MI) is 5 / 10.
Can you provide the dividend sustainability for 1WMT stock?
The dividend rating of WALMART INC (1WMT.MI) is 3 / 10 and the dividend payout ratio is 31.92%.